XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Derivative Financial Instruments | 3 Months Ended
--- | ---
Mar. 31, 2017
Derivative Financial Instruments [Abstract] |
Derivative Financial Instruments | 11.DERIVATIVE FINANCIAL INSTRUMENTS The Company recognizes all derivatives on the Condensed Consolidated Balance Sheet at fair value. All of the Company’s derivatives have been designated as cash flow hedges; therefore, the effective portion of the changes in the fair value of derivatives will be recognized in accumulated other comprehensive loss (“AOCL”) until the hedged item is recognized in earnings. The ineffective portion of the changes in the fair value of derivatives will be immediately recognized in earnings. The Company classifies cash inflows and outflows from derivatives within operating activities on the Condensed Consolidated Statements of Cash Flows. One of the Company’s objectives for utilizing derivative instruments is to reduce its exposure to fluctuations in cash flows due to changes in the variable interest rates of certain borrowings issued under its Credit Agreement. The Company’s strategy to achieve that objective involves entering into interest rate swaps. The interest rate swaps outstanding at March 31, 2017 were specifically designated to the Credit Agreement and accounted for as cash flow hedges. At March 31, 2017, the Company’s derivative instruments included 11 interest rate swap agreements as follows:
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ Date Entered |  | Notional Amount |  | Fixed Interest Rate Paid* |  | Variable Interest Rate Received |  | Effective Date |  | Expiration Date
﻿April 2014 |  | $ | 100,000 |  | 1.800% |  |  | 1-month LIBOR |  | July 2014 |  | July 2019
﻿May 2014 |  | $ | 50,000 |  | 2.344% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿May 2014 |  | $ | 25,000 |  | 2.326% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿May 2014 |  | $ | 50,000 |  | 2.350% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿May 2014 |  | $ | 50,000 |  | 2.350% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿April 2016 |  | $ | 100,000 |  | 1.000% |  |  | 1-month LIBOR |  | February 2017 |  | February 2020
﻿June 2016 |  | $ | 75,000 |  | 0.850% |  |  | 1-month LIBOR |  | February 2017 |  | February 2020
﻿June 2016 |  | $ | 150,000 |  | 0.950% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
﻿June 2016 |  | $ | 150,000 |  | 0.950% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
﻿July 2016 |  | $ | 50,000 |  | 0.900% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
﻿July 2016 |  | $ | 50,000 |  | 0.890% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
____________________ * Plus applicable margin. Another of the Company’s objectives for utilizing derivative instruments is to reduce its exposure to fluctuations in cash flows due to changes in the price of diesel fuel. The Company’s strategy to achieve that objective involves periodically entering into fuel hedges that are specifically designated to certain forecasted diesel fuel purchases and accounted for as cash flow hedges. At March 31, 2017, the Company’s derivative instruments included four fuel hedge agreements as follows:
﻿ |  |  |  |  |  |  |  |  |  |
Date Entered |  | Notional Amount (in gallons per month) |  | Diesel Rate Paid Fixed (per gallon) |  | Diesel Rate Received Variable |  | Effective Date |  | Expiration Date
﻿May 2015 |  | 300,000 |  | $3.2800 |  | DOE Diesel Fuel Index* |  | January 2016 |  | December 2017
﻿May 2015 |  | 200,000 |  | $3.2750 |  | DOE Diesel Fuel Index* |  | January 2016 |  | December 2017
﻿July 2016 |  | 500,000 |  | $2.4988 |  | DOE Diesel Fuel Index* |  | January 2017 |  | December 2017
﻿July 2016 |  | 1,000,000 |  | $2.6345 |  | DOE Diesel Fuel Index* |  | January 2018 |  | December 2018
____________________ * If the national U.S. on-highway average price for a gallon of diesel fuel (“average price”), as published by the U.S. Department of Energy (“DOE”), exceeds the contract price per gallon, the Company receives the difference between the average price and the contract price (multiplied by the notional number of gallons) from the counterparty. If the average price is less than the contract price per gallon, the Company pays the difference to the counterparty. ﻿ The fair values of derivative instruments designated as cash flow hedges as of March 31, 2017, were as follows: ﻿
﻿ |  |  |  |  |  |  |  |
Derivatives Designated as Cash |  | Asset Derivatives |  | Liability Derivatives
Flow Hedges |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
﻿Interest rate swaps |  | Prepaid expenses and other current assets(a) | $ | 1,091 |  | Accrued liabilities(a) | $ | (2,449)
﻿ |  | Other assets, net |  | 13,458 |  | Other long-term liabilities |  | (1,652)
﻿ |  |  |  |  |  |  |  |
﻿Fuel hedges |  | Prepaid expenses and other current assets(b) |  | 466 |  | Accrued liabilities(b) |  | (3,015)
﻿ |  | Other assets, net |  | 25 |  |  |  |
﻿Total derivatives designated as cash flow hedges |  |  | $ | 15,040 |  |  | $ | (7,116)
____________________
| (a) Represents the estimated amount of the existing unrealized gains and losses, respectively, on interest rate swaps as of March 31, 2017 (based on the interest rate yield curve at that date), included in AOCL expected to be reclassified into pre-tax earnings within the next 12 months. The actual amounts reclassified into earnings are dependent on future movements in interest rates.
(b)Represents the estimated amount of the existing unrealized gains and losses, respectively, on fuel hedges as of March 31, 2017 (based on the forward DOE diesel fuel index curve at that date), included in AOCL expected to be reclassified into pre-tax earnings within the next 12 months. The actual amounts reclassified into earnings are dependent on future movements in diesel fuel prices. ﻿ The fair values of derivative instruments designated as cash flow hedges as of December 31, 2016, were as follows:
﻿ |  |  |  |  |  |  |  |
Derivatives Designated as Cash |  | Asset Derivatives |  | Liability Derivatives
Flow Hedges |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
﻿Interest rate swaps |  | Prepaid expenses and other current assets | $ | 127 |  | Accrued liabilities | $ | (3,260)
﻿ |  | Other assets, net |  | 13,822 |  | Other long-term liabilities |  | (2,350)
﻿ |  |  |  |  |  |  |  |
﻿Fuel hedges |  | Prepaid expenses and other current assets |  | 1,343 |  | Accrued liabilities |  | (3,258)
﻿ |  | Other assets, net |  | 1,651 |  |  |  |
﻿Total derivatives designated as cash flow hedges |  |  | $ | 16,943 |  |  | $ | (8,868)
﻿ |  |  |  |  |  |  |  |
﻿ The following table summarizes the impact of the Company’s cash flow hedges on the results of operations, comprehensive income (loss) and AOCL for the three months ended March 31, 2017 and 2016:
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives Designated as Cash Flow Hedges |  | Amount of Gain or (Loss) Recognized as AOCL on Derivatives, Net of Tax (Effective Portion)(a) |  | Statement of Net Income Classification |  | Amount of (Gain) or Loss Reclassified from AOCL into Earnings, Net of Tax (Effective Portion) (b),(c)
﻿ |  | Three Months Ended March 31, |  |  |  | Three Months Ended March 31,
﻿ |  | 2017 |  | 2016 |  |  |  | 2017 |  | 2016
﻿Interest rate swaps |  | $ | 755 |  | $ | (4,144) |  | Interest expense |  | $ | 795 |  | $ | 1,060
﻿Fuel hedges |  |  | (1,994) |  |  | (808) |  | Cost of operations |  |  | 596 |  |  | 1,116
﻿Total |  | $ | (1,239) |  | $ | (4,952) |  |  |  | $ | 1,391 |  | $ | 2,176
___________________ (a)In accordance with the derivatives and hedging guidance, the effective portions of the changes in fair values of interest rate swaps and fuel hedges have been recorded in equity as a component of AOCL. As the critical terms of the interest rate swaps match the underlying debt being hedged, no ineffectiveness is recognized on these swaps and, therefore, all unrealized changes in fair value are recorded in AOCL. Because changes in the actual price of diesel fuel and changes in the DOE index price do not offset exactly each reporting period, the Company assesses whether the fuel hedges are highly effective using the cumulative dollar offset approach. (b)Amounts reclassified from AOCL into earnings related to realized gains and losses on interest rate swaps are recognized when interest payments or receipts occur related to the swap contracts, which correspond to when interest payments are made on the Company’s hedged debt. (c)Amounts reclassified from AOCL into earnings related to realized gains and losses on the fuel hedges are recognized when settlement payments or receipts occur related to the hedge contracts, which correspond to when the underlying fuel is consumed. The Company measures and records ineffectiveness on the fuel hedges in Cost of operations in the Condensed Consolidated Statements of Net Income on a monthly basis based on the difference between the DOE index price and the actual price of diesel fuel purchased, multiplied by the notional number of gallons on the contracts. There was no significant ineffectiveness recognized on the fuel hedges during the three months ended March 31, 2017 and 2016. See Note 15 for further discussion on the impact of the Company’s hedge accounting to its consolidated comprehensive income (loss) and AOCL. ﻿

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration